SM shareholders OK Allfirst Equity takeover

Shareholders of SM Investments Corporation (SMIC) have approved the takeover of Allfirst Equity Holdings Inc., in line with the firm’s efforts to boost investments in renewable energy-related production.

In the firm’s annual stockholders’ meeting on Wednesday, 83.2% of SMIC’s shareholders voted in favor of the merger with Allfirst, with SMIC as the surviving entity.

Allfirst is the parent firm of Philippine Geothermal Production Company Inc., which is involved in the business of development and utilization of minerals, mineral oils, geothermal, and other similar products.

“Our acquisition of the Philippine Geothermal Production Company reflects our commitment to sustainability and our strong support to promote clean energy,” SMIC president and CEO Frederic DyBuncio said during the meeting.

“This acquisition will further enhance our sustainability portfolio and exposure. It is a one-off transaction even as we continue to be cognizant of companies in the Philippines that have the potential for high growth in the country,” he added.

The Sy-led conglomerate earlier said the deal is in line with its commitment to environmental stewardship and tackle climate change, and will create value for minority shareholders.

Under the deal, SMIC will issue 43 common shares in exchange for one Allfirst common share, or a total of 21.5 million SMIC common shares, subject to fairness opinion by an independent appraiser.

Out of the 21.5 million SMIC common shares, 4 million shares will be issued by SMIC to itself and treated as treasury shares, while 17.4 million shares will be issued to the other shareholders of Allfirst.

The transaction will drive SMIC’s ownership in Allfirst up to 100% from 19%, with the transaction expected to be accretive to the earnings per share of the conglomerate’s shareholders.

SMIC on Wednesday announced dividends of P6.25 per share or a total of P7.528 billion to shareholders on record as of May 13, 2022, payable on May 26, 2022.

Moving forward, SMIC said it will continue to boost in its e-commerce platforms given the growth in online transactions even as mall foot traffic continues to improve as COVID-19 restrictions are eased.

“We will continue in our strengths in both the physical and online spaces and innovate further into the future to serve our customers better,” DyBuncio said.

SMIC is the holding company of the SM Group, with interests in retail, property, and banking.

Its portfolio includes The SM Store, SM Supermarket, SM Hypermarket, SaveMore, Walter Mart Supermarket Inc., Alfamart, SM Prime Holdings INc., SM Development Corp., BDO Unibank Inc., and China Banking Corp.

Shares in SMIC closed Wednesday down by P9.00 or 1.05% at P851.00 apiece versus Tuesday’s finish of P860.00. — BM, GMA News